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And that's not even tackling the question of "how to provide I.D. ?".
As for "total Steam ban if hacking", if I recall correctly, publishers don't want to restrict a potential buyer due to actions that doesn't concern them. Furthermore, if you own a game whose definition of "hacking" includes things that you wouldn't think would fall in that definition (For example, CoD is decried for its mod-unfriendly mindset, where coloring your own gun blue would get you VAC banned. Another example would be the debate "is cheating against bots in offline mode cheating ?", whose answer isn't clear-cut), it becomes more of an issue.
Anyone that plays again after getting a VAC ban has created a new account and bought the game again ("charged" to have account back).
So... this already exists.
it could be made really easy, you go into one of the many many stores that steam has partnered with along with photo I.D and a debit card that match each other and you can have a steam account or if you do not have a debit card any 3 forms of I.D proving that you are who you are that everyone should have in the developed world.
and as for the potential future customers , thats like saying they are Ok with hacking.
If someone walked around a bar and started knocking everyones drink over they bought with their own money would they be allowed back in just because he may come back one day to buy a drink again? the answer is clearly no mate and it shouldn't be any different in online gaming.
if you cheat you should be prepared to pay a 50 bucks fine to have ur account back or you are fully banned or at least have the game deleted from your list and forced to buy it again after a 1 month suspension.
The reason why people are hacking is because it's far too easy for them to do so , this is why steam needs to be really strict with it.
I think the kind of hacking that goes on these days is more than just going into a game and annoying a few people , it's stealing peoples money from them in my eyes.
So you want someone standing in a corner shop to deal with taking ID from teenagers who probably won't have 3 forms of ID, may not have a debit or credit card and have access to photoshop and laser printers? Do you really believe they couldn't just fake something up?
Aside from the fact that some countries don't have stores that sell Steam Cards (if that's what you mean by partnered with) and those that do may not have the facility to do what you want them to do....
You will also get a backlash from publishers saying "This person didn't cheat in our game, how dare you take access away from them" and then games leave Steam as they don't want their players banned for nothing. In your own analogy:
You are saying that someone walked around and started knocking over drinks but then they were banned from every shop in the area, even ones they've never been in, may actually be the owner of...
Also...
Or they simply don't see the need to get personal data just to play a game (that's what Steam is for). Even today, some people have difficulties to grasp the need to sign up for DRM to play their game. So, adding an additional layer, veering into privacy, wouldn't fly.
One can see how much some people care for their personal data whenever someone wants additional integration of social media into Steam : there's usually a backlash because of their privacy-infringing policies, and they don't want it into Steam.
They make a new account. Buy cheats or download cheats. Then use them till they are banned and repeat this because they are losers.
The people that have large amount of games on their account often gotten it banned because a they either lost it to a hijacker or a stupid friend thought it'd be fun to cheat on it.
VAC bans don't go away, ever. Unless it's a faulty ban which is rare.
Now that's just for VAC. Some developers rely on their own Anti cheat or none at all. Maybe because it's in their business plan to make people buy the new game when it comes out because the old one have a bit too high amount of cheaters.
VAC also isn't the end to all of cheaters. It was never planned to be, it was supposed to work together with Server admins where VAC bans people after they are found out using a cheat and server admins just bans the cheater from their server in the meantime.
There's a lot of payment methods that do not require IDs (Wallet cards, Paysafe Cards...)
I can relate to the frustration cheaters can cause. But this kind of solutions become way more annoying for normal users than for cheaters.